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Key points
- Marley Spoon share price up 9% on strong revenue growth
- US and Aussie markets post strongest growth
- More supply chain volatility expected
The Marley Spoon AG (ASX: MMM) share price is up 8.5% in afternoon trade to 70 cents per share.
Shares in the global subscription-based meal kit provider leapt as high as 75 cents in morning trade as ASX investors digested the company's strong results for Q4 2021, for the quarter ending on 31 December.
Marley Spoon share price lifts on 24% quarterly revenue growth
- Net revenue for FY21 of 322 million euros up 27% year-on-year
- Fourth quarter net revenue of 85 million euros up 24% year-on-year
- Q4 Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of 4.8 million euros
- Year-end cash balance of 39 million euros
(1 euro = AU$1.59 at time of writing.)
What else happened during the quarter?
The 322 million euros in net revenue for FY21 was within the company's guidance range. The boost in revenue resulted in a 2-year Compound Annual Growth Rate (CAGR) of 56%.
Marley Spoon reported that Australia and the United States drove the fourth quarter revenue growth, with revenue in the Aussie market up 52% and in the US up 15%. The company attributed this to its broader range of product offerings and continued investment into increasing its subscriber base.
Shortly after the end of the reporting quarter, Marley Spoon completed its acquisition of Chefgood Pty Ltd in Australia. The acquisition is intended to expand the company's customer choice and increase its average revenue per user (ARPU).
What did management say?
Commenting on the results, Marley Spoon's CEO, Fabian Siegel said:
We are particularly pleased with our team's strong operating performance leading to the highest quarterly contribution margin of 31% in a challenging operating environment. The contribution margin performance was aided by successful price increases, demonstrating the pricing power our brands enjoy.
We also improved our marketing efficiency allowing us to acquire more customers at costs in-line with previous years despite significant CPM inflation. The contribution margin expansion and disciplined investment in marketing led to an improvement in Operating EBITDA versus previous quarters, landing at €(4.8m), in line with our expectations.
What's next?
In its guidance for the full 2022 calendar year, Marley Spoon said it will "focus on continued growth within its current balance sheet capacity".
The company expects customer behaviour to remain volatile along with supply chain disruptions and inflation. Guidance (excluding the contribution of Chefgood) was reported as:
- Mid-to-high teens year-on-year net revenue organic growth (plus full year contribution from Chefgood)
- Contribution Margin in-line with 2021
- Operating EBITDA better than €(15m)
Marley Spoon share price snapshot
The Marley Spoon share price is down 28% so far in 2022. That compares to a loss of 8% posted by the All Ordinaries Index (ASX: XAO).
